Are Cyprus' issues related to the financial crisis in Greece?
We need look no further than the streets of Athens to understand how Cyprus ended up in its current position, according to CNN's Jim Boulden.
When a struggling Greece was allowed to let some of its private bondholders take a loss, Cypriot banks -- which held a lot of bad Greek debt -- lost money and needed refinancing. So the big financial institutions like the Bank of Cyprus asked for a bailout from the government, and the government came to the EU in June 2012 saying it needed a bailout in turn.
Talks dragged until last weekend, as Cyprus resisted many of the tough economic measures demanded by potential institutional lenders in return for bailout funds. Boulden said one sticking point was whether Cyprus would have to raise its corporate tax from the EU's lowest of 10% to 12.5% -- equal to Ireland.